Market Analysis: Gold Price Takes Hit While Crude Oil Price Extends Rally

FXOpen

Gold price is declining below the $2,010 support zone. Crude oil price is rising and it could climb further higher toward the $80 resistance.

Important Takeaways for Gold and Oil Prices Analysis Today

· Gold price failed to clear the $2,032 resistance and corrected lower against the US Dollar.

· It traded below a short-term rising channel with support at $2,020 on the hourly chart of gold at FXOpen.

· Crude oil prices are moving higher above the $76.10 resistance zone.

· There is a key bullish trend line forming with support near $77.40 on the hourly chart of XTI/USD at FXOpen.

Gold Price Technical Analysis

On the hourly chart of Gold at FXOpen, the price was able to climb above the $2,020 resistance. The price even broke the $2,030 level before the bears appeared.

The price traded as high as $2,032 before there was a fresh decline, as mentioned in the previous analysis. There was a move below the $2,020 pivot zone. The price settled below the 50-hour simple moving average and RSI dipped below 30. Finally, it tested the $1,988 zone.

The price is now consolidating losses near the $1,990 level. Immediate resistance on the upside is near the $1,998 level or the 23.6% Fib retracement level of the downward move from the $2,031 swing high to the $1,988 low.

The next major resistance is near the 50-hour simple moving average and the 50% Fib retracement level of the downward move from the $2,031 swing high to the $1,988 low at $2,010.

An upside break above the $2,010 resistance could send Gold price toward $2,020. Any more gains may perhaps set the pace for an increase toward the $2,032 level. If there is no recovery wave, the price could continue to move down.

Initial support on the downside is near the $1,988 level. The first major support is $1,980. If there is a downside break below the $1,980 support, the price might decline further. In the stated case, the price might drop toward the $1,962 support.

Oil Price Technical Analysis

On the hourly chart of WTI Crude Oil at FXOpen, the price started a decent increase against the US Dollar. The price gained bullish momentum after it broke the $74.30 resistance.

There was a sustained upward move above the $75.50 and $76.10 levels. The bulls pushed the price above the 50-hour simple moving average and the RSI climbed toward 65. A high was formed near $78.107 before there was a downside correction.

The price declined below the 23.6% Fib retracement level of the upward move from the $75.46 swing low to the $78.07 high. However, the bulls are active above a key bullish trend line with support near $77.40.

Immediate resistance is near the $78.10 level. If the price climbs further higher, it could face resistance near $78.80. The next major resistance is near the $80.00 level. Any more gains might send the price toward the $82.00 level.

Conversely, the price might correct gains and retest the 50-hour simple moving average and the 50% Fib retracement level of the upward move from the $75.46 swing low to the $78.07 high at $76.75.

The next major support on the WTI crude oil chart is near $76.10. If there is a downside break, the price might decline toward $74.30. Any more losses may perhaps open the doors for a move toward the $73.50 support zone.

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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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